Intel "neutral," target price reduced

13.11.08 - Robert W. Baird

NEW YORK, November 13 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on Intel Corporation (INTC), while reducing their estimates for the company. The target price has been reduced from $18 to $14.

In a research note published this morning, the analysts mention that the company has reduced its 4Q08 revenue and gross margin guidance due to weaker-than-expected demand. Declining IT spending, low consumer spending levels and potential inventory risk are likely to have a negative impact on Intel?s performance going forward, the analysts say. The EPS estimates for FY08 and FY09 have been reduced from $1.24 to $1.10 and from $1.20 to $0.85, respectively.